6 things to expect in mobile from Microsoft's Nokia acquisition

So Microsoft has bought the best bits of Nokia, and given their already cozy relationship, the two companies will likely be working as one much more quickly than, say, Google and Motorola did. What can we expect from the next couple years of this intriguing mashup?

#1. Pureview rolls out en masse

One of the few things Nokia is truly known for in the modern smartphone market is actually innovating in the camera space. Most skeptics of the 41-megapixel Pureview sensor have been silenced by its versatility and image quality. Sure, there's work to be done in speeding it up and adding features, but the core technology is unique and powerful.

Microsoft knows this adds a big card to their hand, and Pureview will almost certainly be a flagship feature of Windows Phones from now on. It won't be on every device, but you can be sure it's going to hit a lot more models than just the top-end superphones.

#2. Windows slums it at the low end

Shipping dumbphones with a dead-end OS doesn't fit Microsoft's plan to nibble away at the smartphone market. Nokia's approach has led to years of decline, but they still have reach, especially in emerging markets. Microsoft will want to use this reach to put some kind of Windows Phone device in the hands of someone trying to decide between a Samsung flip-phone and a Nokia Asha.

This won't be easy — but it may be a better fit for a cut-down version of an OS than in the disastrous Windows RT tablets. A Windows Phone "lite" running on cheap hardware could put millions into Microsoft's world of services.

A side effect of this will be an attempt to freeze Android out of the budget segment. Every month, Android phones get closer and closer to supplanting dumbphones in massive markets like India and China. Offering a killer low-end phone will halt the enemy's progress and boost friendly ranks.

#3. Photos get a social and cloud boost

Microsoft may have recently updated its Skydrive service with better photo options, but they're still lagging far behind Apple and Google when it comes to a smooth, connected photo-taking and sharing experience. Microsoft should be bending over backwards to make sure apps like Instagram and Vine are available on Windows Phone, while pushing connections with Facebook to the maximum. Why, for example, isn't Binging all your and your friends' Facebook photos and tags already a homepage action? And why is WP always the last to be supported by the cool new thing?

Nokia has a lot of thoughtful software engineers who have built accessible, innovative apps over the last few years, and they may combine with Microsoft's vast ecosystem of services to make something powerful. Or at least, it's possible.

#4. Skype everywhere

Microsoft has been waiting for a way to extend the mobile reach of Skype for a long time, and this is a great opportunity. Include it (with some sort of sweet data deal) on every Windows Phone as an answer to FaceTime and Google Hangouts and watch as users stick with the default. Want to bet every phone Microsoft sells starting a year from now has dual cameras?

#5. Industry acquaintances get the cold shoulder

After an initial (and largely ineffective) push, companies like Samsung and LG have offered only lukewarm support of Microsoft's newer platforms. Microsoft thanked them both with the self-produced Surface tablets, and by partnering for all intents and purposes exclusively with Nokia. Expect this frosty relationship to chill even further now that Microsoft has no particular need for their design and manufacturing prowess.

#6. "Nokia" will stick around

A few comments have been made about the branding of devices: Microsoft Windows Phone Nokia Lumia 1020 is about four words too long, and many have suggested that "Nokia" is on the chopping block. That's doubtful. Nokia is one of the most well-recognized mobile brands in the world, and has many positive associations. Windows Phone and Lumia are newer and more mixed. Moreover, callously retiring a cherished and valuable brand would be very bad PR.

No, Microsoft's best move is to make sure that "Nokia" is solely associated with Windows, so much so that they don't have to say it in the name. If anything, "Nokia" will be the last brand standing when it comes to what's actually advertised. Intel, after all, didn't tell Dell to call their computers "Intel Pentium Inspirons"... yet "Intel Inside" is a brand that persists to this day, while "Inspiron" is virtually without cachet. Google relaunched Motorola rather than absorb it.

Comments

MS "rented" brands from Nokia"Lumia" for smartphones"Asha" for feature phones"Nokia" for basic phonesAND that for a while Nokia can't have "Nokia" smartphones,BUT remember that ALL the factories and personnel was bought by MSFT. Nokia is not capable of doing any phone design nor manufacture any phones - EVER

We can expect more abortive disasters from Microsoft, so much is sure.

First they had their trojan horse Elop destroy Nokia, with moves too detrimental to be accidental. Now they buy Nokia on the cheap, thinking they will "recast Microsoft into a devices and services company"

They have their heads way too far up their behinds to make that happen.

So far, as a devices company, they scored the worst iFixit score ever for their tablets, they neutered Windows RT, by pulling the already finished windows software support at the behest of Intel, who didn't want to have to compete with ARM, so they can keep their prices sky high.

Next up, remember Zune? remember when Microcruft turned off their DRM servers, so all customers who had purchased their digital music lost all of the music they had payed for, with no compensation at all.

I switched to Nokia and wp8 after 4years married to android from HTC legend to nexus 7 , not because they're the best I just got bored from android and want to be little different and I see that they have a great chance to be much better platform with more updates and better store.

For all scenarios, the prices are roughly the same, all have about the same features. Android and iOS provide already established platforms: large support communities (users), all software houses will build their apps for these OS-es while not all will build for Windows. Why buy the Windows phone, then?

What I'm saying is Microsoft should start offering something new to make them interesting. Aggressive prices would be tempting for customers, additional features will help. Maybe there are other ways, but simply using the Microsoft or Nokia brands won't help. The fact they bought Nokia, won't do magic -- even if they keep all the good Nokia engineers (which is doubtful), they must do something very visible after this aquisition.

Microsoft has the biggest developer community with the best developer tools.In a couple of years Windows 8 will be all prevalent in enterprises and homes around the world and it will be a no brainer for IT managers to dictate Windows phones for all employees.Windows phone development requires almost zero learning effort for Windows developers so we will see tons of new apps very quickly as soon as it catches on.

Exactly. Microsoft and Windows are too closely associated with frustrations from noisy old Windows NT mainframes, desktops, and so on. It represents clunkiness and annoyances, not visions. It's kind of funny because Microsoft thinks "Windows" is a super strong brand, but not everything well known is well known in a positive sense...

When it comes to mobility, I actually, honestly believe that Nokia is a stronger brand, especially with their pretty decent Windows Phone series.

Firstly, a few things have to set right:1) Microsoft did not buy any patents, they just licensed them.2) The acquired part of Nokia is currently responsible for roughly half of the revenue - and all of the losses.3) As said, Microsoft has a limited time to use the Nokia brand - and there is no contractual obstacle for Nokia to return to phone buisiness after a couple of years with the Nokia brand (small chance that would happen, though).

And what will happen?1) Microsoft has not got a clue what to do with the PureView brand. They will probably destroy it, either willingly or accidentally.2) Microsoft envisages itself as a leader, although they are a follower. They will continue to under-spec and over-price their offerings.3) Now that they merged with their "sparring partner", there is no-one to tell them what is wrong before it is too late. 4) All in all, I do not see a future for Windows Phone.5) Sell.

Actually, the brand Nokia remains with Nokia Corporation. Microsoft has acquired limited rights to the brand, allowing them to use it for existing devices only. Any new device made by Microsoft will have to carry another brand name.

The part of Nokia which Microsoft didn't buy, Nokia Solutions and Networks (formerly Nokia Siemens Networks) is big in telecom equipment and services and it's doing quite well.

What to expect?Let me see...(1)Unification of the API on W8.1, W8.1 RT, WP 8.1, Xbox One=> explosion on the ecosystemWill happen starting Feb 2014(2)MONEY on the marketing(3)No more delays on the development of the WP(may have to wait for the re-org to finish)- - -Looks very very good!

The funny thing is that MS makes a lot of money off every Android phone sold ($7-8/handset) due to patent infringements. You can look it up. They make more money off Android than WP8. MS really wins either way.

Ironically, the last time I was on the market for a smartphone, I was fine with Windows, but did not like the hyped camera of the 920, not to mention it felt like a brick in my hand. I do not even use my smartphone camera so often.

I like that my phone has a camera, but I don't by a camera to have a phone. Its phone first, camera second for me.

Microsoft has really no track record of being innovative. It managed to secure the office market place, but I would be hard pressed to point to any game changers that came from them. There OS admittedly was a copy of Apple's. They missed copying iOS and Google beat them to the punch. Now there in catch up same with Nokia. They will remain the third player, I don't expect any leaps ahead with innovation.

Gates is only interested in curing malaria in Africa, for the last 13 or so years. He has enough money already. Even when he officially held position of Chief Architect, he did not do much. More African kids to survive malaria only to suffer and die from hunger or wars for the diminishing supply of food and water.And the day to day decisions which determine whether a company can compete are definitely not big enough.

1. All existing WP licensees (except for a couple of small Chinese) will exit WP, leaving MS alone

2. People will grow doubtful towards Nokia devices, now that they are MS devices, which has three times now threatened to obsolete old WP device in a year (that is: you buy every year, or we obsolte your device)

3. MS will keep it's sluggish updates to the lacking features of WP

4. Sales will fall, worldwide market share will fall.

5. MS will fail with WP phones, just as they did with sidekick, zune and many other customer devices they tried in already crowded markets.

6. In 4-6 years MS will replace WP with something new, and call it the true successor of WP, leaving all the remaining WP users stranded.

I'm usually skeptical about MS, but this particular move should be looked at as their effort in trying to (properly, finally) spread their wings in the global market. They bought out Nokia precisely to address your point #3 and #5.

Recently they've admitted that their partnership with Nokia could use more synergy and after this acquisition I think it's reasonable to expect better features and faster updates from Windows Phone.

Another important point of acquiring Nokia is - as mentioned - the access to their massive global presence and distribution network, which remain as MS's biggest hurdle yet in their mission to become a global "Devices and Services" company. So instead of building up their network from scratch, they decided to just buy out an established one wholesale instead. [Personally I'm baffled that a company as massive as MS is still stuck in their North America lala-land, passing up opportunities (Windows, Office, Xbox) to stamp their global presence]

I own 2 WINCE devices and have owned 2 WINCE phones. While the 'pocketPCs' are fairly stable both of the phone versions were requiring almost monthly 'factory resets' to bring back to life.

MS re-badges, re-brands, re-launches the same failing technology over and over while leaving customers of its prior versions in the wake.

This is what makes the Apple ecosystem attractive. Many of their models OS can be upgraded a few times before being OBS and even when OBS they are fully functional. (a friend still uses a iPhone3)

My prediction(s)? MS will lease/rent the phones and/or require a 18mo replacement cycle and kill off+bury whatever is left of Nokia in the process. Someone will come out with a not-so-smart cheap flip phone that has good Youtube+FB+browser built in and the low end will live on without Nokia or MS.

"Microsoft milked the whole world with pricey softwares for the decades Windows and Office all but monopolised the market.Nokia did the same thing with their unsmart phones."

WTH are you talking about?? Nokia monopolising the market and producing "unsmart" phones???

1, they did not force anyone to buy their handsets. Actually, they even had little presence in the US during their golden days.

2, "unsmart"? You certainly don't know what you're speaking about. In many respects, their 5-year-old models are still smarter than today's stock iOS or WP7/8 models; for example, call recording support. In addition, they were leaders in camera tech during the last 10-11 years. Have you ever compared the camera of, say, the N95 to the first iPhone? The N8 to the 3GS? The 808 to the 4S? There simply isn't comparison - Nokia has always been much-much smarter in imaging than Apple. (And most of the Android folks, starting with 2009.)

Slap DUAL 41mp Pureviews for lossless zooming, 3D photography and video on the Windows Surface. Got to bring something to the RT to make it sell, and they will position Microsoft as the imaging/film tablet par excellence. I know I'd like it. This is one of the key resources of what they bought. There's space and processing power.